Q.1

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $396,000 in cash. The subsidiary's stockholders' equity accounts totaled $380,000, and the noncontrolling Interest had a fair value of $44,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $25,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (four-year remaining life) Brey reported net income from its own operations of $70,000 in 2019 and $86,000 in 2020. Brey declared dividends of $22.000 in 2019 and $26,000 in 2020. Brey sells inventory to Pitino as follows: -37 TOAT 2019 2020 2021 Cost to Transfer Price Year-End (nt trannter Inventory Remaining at rey to Pitino price) $75,000 $ 145,000 $ 31,000 82,500 165,000 43,500 95.000 190,000 65,000 At December 31, 2021, Pitino owes Broy $22,000 for inventory acquired during the period. The following separate account balances are for these two companies for December 31, 2021, and the year then ended Note: Parentheses indicate a credit balance.. Sales revenues Cost of goods sold Expenses Equity in earnings of Brey Net Income Retained earninge, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Maat wete Pitino Brey $ (874,000) $(396,000) 521,000 215,000 186,000 70,000 80,100) O $ (247,100) $(111,000) $ (500,000) $(290,000) (247,100) (111,000) 135,000 25,000 $ (612,100) 5(376,000) $ 152,000 $ 104,000 285,000 166,000 510,975 0 970,000 334,000 S 1.917.975 S 504.000 0 S 29 Expenses Equity in earnings of Brey Net income Retained earninga, 171721 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Brey Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity 186,000 70,000 (80.100) 5 (247.100) $(111,000) (500,000) $(290,000) (247,100) (111,000) 135,000 25,000 $ (612,100) 5(376,000) $ 152,000 $ 104,000 285,000 166,000 510,975 0 970,000 334,000 $ 1,917,975 $ 604,000 S (760,875) $ (30,000) (545,000) (198,000) (612, 100) (376,000) $(1,917,975) $(604,000) a. What was the annual amortization resulting from the acquisition date fair-value allocations? b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in Inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? f. What is the net income attributable to the noncontrolling interest for 2021? 9. What amounts make up the $510,975 Investment in Brey account balance as of December 31, 20217 h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. 1. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies. Complete this question by entering your answers in the tabs below. VERI b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in Inventory existed as of January 1, 2021? d. What Intra-entity gross profit in inventory existed as of December 31, 2021? e. What amounts make up the $80,100 Equity Earnings of Brey account balance for 20212 1. What is the net income attributable to the noncontrolling interest for 2021? g. What amounts make up the $510,975 Investment in Brey account balance as of December 31, 2021? h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. i. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies Complete this question by entering your answers in the tabs below. Reg A to D Reg E Reg F Reg G Reg H Reg1 a. What was the annual amortization resulting from the acquisition date fair-value allocations? b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in Inventory existed as of December 31, 2021? Show less a. Annual amortization b. Intra-entity transfers G Intra-entity gross profil, January 1, 2021 d. intra-entity gross pront, December 31, 2021 RgAto D ReqE> g. What h. Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. i. Without preparing a worksheet or consolidation entries, determine the consolidation balances for the 34 Complete this question by entering your answers in the tabs below. Req A to D ReqE ReqF Req G ReqH Reg! a. What was the annual amortization resulting from the acquisition-date fair-value allocations? b. Were the intra-entity transfers upstream or downstream? c. What intra-entity gross profit in inventory existed as of January 1, 2021? d. What intra-entity gross profit in inventory existed as of December 31, 2021? a. Annual amortization b. Intra-entity transfers c. Intra-entity gross profit, January 1, 2021 d. Intra-entity gross profit, December 31, 2021 Prey 1 of 41 !!! Next > MacBook Pro G Search or type URL 7 $ 0% Complete this question by entering your answers in the tabs below. Reg A to D ReqE Reg F Req G Reg H Reg 1 What amounts make up the $80,100 Equity Earnings of Brey account balance for 2021? % piepal Complete this question by entering your answers in the tabs below. Reg A to D Reg E ReqF Req G ReqH ReqI What is the net income attributable to the noncontrolling interest for 2021? Net income attributable to noncontrolling interest Complete this question by entering your answers in the tabs below. Reg A to D Reg E Reg F ReqG ReqH Reg 1 What amounts make up the $510,975 Investment in Brey account balance as of December 31, 2021? 53 Investment in Brey (consideration transferred) Net income of Brey % Dividends declared by Brey % Req G ReqH Req1 Reg E Reg A to D ReqF Prepare the 2021 worksheet entry to eliminate the subsidiary's beginning owners' equity balances. (If no entry is required fo transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries